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Private Marketplace (PMP) – Where we’re headed?

Private Marketplace (PMP)
As the digital industry looks for a solution to ad fraud, more sellers and buyers tend to engage in a private marketplace where only high-quality publishers provide their ad inventory to selected advertisers.

Programmatic advertising is an ever-evolving landscape. You all remember how we started? From direct sales to ad networks to ad exchanges, and here we are on the verge of the next transition – Private Marketplace (PMP). But what ignites the change every time? 

We say, Inability.

When Ad networks couldn’t place ads based on behavioral data, Ad Exchanges were born. Similarly, to leapfrog the drawbacks of real-time bidding on open exchanges, Private Marketplaces (PMPs) were created.

What is a Private Marketplace (PMP)

A Private Marketplace refers to the real-time auction of publishers’ ad inventory in an invite-only set up with a selected number of advertisers.

To put it simply, a private marketplace lets you cherrypick the buyers so that your reader will see the most relevant ad. The main difference between other auctions and Private Marketplace is that PMP is an invite-only auction where a publisher invites advertisers to bid on its inventory. Due to this “invite-only” feature, this auction is termed as a private auction

As the digital industry looks for a solution to ad fraud, more sellers and buyers tend to engage in a private marketplace where only high-quality publishers provide their ad inventory to selected advertisers. 

The publisher is aware of the bidding buyers and the inventories (generally, premium) are sold to them at higher prices (CPMs).

Without PMPs, we have to deal with,

  • Increased ad fraud cases. 
  • Complaints of hidden vendor charges.
  • Mishaps in targeting the correct audience.
  • Inability to connect a handful of relevant buyers with a publisher.

As PMPs are set to eliminate these drawbacks, spending on Private MarketPlaces continues to increase. 

Open auction (Open-RTB) Vs Private Marketplace (PMP)

In a Private Marketplace, publishers have better control over their ad inventories. Be it the CPMs, advertisers, and the type of creatives that will be displayed on their site. The private marketplace guarantees higher CPM as a publisher offers ‘first-look’ to the premium ad inventories to the buyers. 

As per a survey by eMarketer, Private Marketplaces will outshine open-RTB buying by the year 2019.

It provides transparency in publisher and advertiser relationships. Advertisers are fully aware of what they are buying and publishers are aware of who they are targeting, which isn’t possible in open marketplaces. 

Benefits of a Private Marketplace (PMP)

Private Marketplaces have grown substantially and will account for more than 40% of the total programmatic ad spend. It is expected to reach more than 50% by the end of this year. The best part is, PMP offers benefits to both publishers and advertisers.

How? We’re glad you asked.

  • PMP provides transparency for both publishers and advertisers. It’s a step to shine a light on the obscurity plaguing the ecosystem. 
  • It offers brands the opportunity to have clear control over where their ads are being promoted instead of being placed everywhere.
  • PMP auctions allow a new way for publishers to fill their ad space. Instead of relying on the sales team, publishers can connect with the selling platform to make their inventory available to the selected advertisers.
  • It ensures premium inventory, thus assuring brand safety.
  • It can give access to unique first-party audience data to advertisers.
  • It helps advertisers to set new buys on top websites quickly and effectively on specifically segmented vertical.
  • It provides relevant impressions to the buyers.
  • It prevents ad fraudsters and spoofers from siphoning the ad dollars.
  • It offers a higher ROI for ad inventories.

How does the future look for PMP?

Though the PMPs are here only for a while, publishers, advertisers, and platforms helped it to grow quickly by adopting and making it a part of their media selling/buying strategies. 

Along with traditional PMPs, there are multi-publisher PMPs available for brands, buyers, and agencies. 

Buyers spend most of their time on managing and organizing deals individually, multi-publisher PMPs save buyers’ time by creating a single deal ID that allows instant scaling. They also offer customization based on the buyers’ needs.

For publishers, both Open Marketplaces (OPMs) and Private Marketplaces (PMPs) serve the same purpose. However, only a premium publisher with rich first-party data sets can woo advertisers and run sustainable PMP auctions. So, where does this leave the mid-market publishers?

We believe OPMs are going to get better – in so many ways. In fact, it has become hard to imagine an adtech ecosystem without any of these marketplaces.

Psst…We helped hundreds of publishers to frame scalable monetization strategies. If you have a minute, feel free to get a free audit for your sites

Automatad Team

At Automatad, we help publishers to monetize better without hampering the user experience. Our products are live across hundreds of publishers, earning them incremental ad revenue with every passing second. You can request a free audit to get an estimated revenue uplift today.

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